Unsustainable Trade Relations At Pak-Afghan Borders – OpEd

By

Pakistan and Afghanistan’s relationship has been shaped by a complex mix of cultural, historical, political, and economic factors. In recent years, trade has emerged as an important dimension of the relationship between these two countries, particularly at the border regions. However, the trade relationship between Pakistan and Afghanistan has been plagued by various challenges, including smuggling, corruption, and inadequate infrastructure, which have contributed to unsustainable trade relations at the Pak-Afghan borders.

Pakistan exports to Afghanistan have decreased while imports have surged significantly. Since the Taliban retook power last August, Pakistan has increased bilateral cooperation and offered trade concessions for the landlocked nation to assist it in overcoming deteriorating humanitarian and economic issues. Pakistani exports to Afghanistan have decreased from about $900 million in the previous fiscal year to over $700 million in the first eleven months of this Fiscal Year (FY 23).

One of the primary challenges facing trade relations between Pakistan and Afghanistan is its unsustainable economic and political policies while smuggling surges as a result of it. The porous nature of the Pak-Afghan border has made it easier for smugglers to carry out illegal trade, including the smuggling of goods, weapons, and people. Smuggling undermines the legitimate trade relationship between the two countries and has a negative impact on the economies of both Pakistan and Afghanistan. It also contributes to the insecurity in the border regions, as it provides an avenue for the illegal trade in weapons and other contraband items.

Another challenge facing trade relations between Pakistan and Afghanistan is corruption. Corruption is widespread at the Pak-Afghan borders, where officials and security personnel are often involved in illegal trade activities, including the smuggling of goods, weapons, and people. This undermines the legitimacy of the trade relationship between the two countries and creates a negative image of the region, which is harmful to the interests of both Pakistan and Afghanistan.

Inadequate infrastructure is another major challenge facing trade relations between Pakistan and Afghanistan. The lack of adequate roads, bridges, and other infrastructure at the Pak-Afghan borders makes it difficult for legitimate trade to take place. This creates bottlenecks in the trade process, leading to long wait times and increased costs for traders. This, in turn, undermines the competitiveness of the region and makes it less attractive for investment and trade.

Despite these challenges, there are several initiatives underway to improve trade relations between Pakistan and Afghanistan. The two countries have established the Afghanistan-Pakistan Transit Trade Agreement (APTTA), which seeks to provide a legal framework for trade between the two countries and to address the challenges facing trade relations at the Pak-Afghan borders. The agreement aims to increase the volume of trade between the two countries, improve the ease of doing business, and reduce the costs of trade.

In addition, there are ongoing efforts to improve the infrastructure at the Pak-Afghan borders, including the construction of new roads and bridges, and the expansion of existing ones. This is expected to improve the flow of trade and make it easier for goods to cross the border. There are also initiatives underway to increase the security and stability of the region, which will make it easier for traders and businesses to operate in the area.

Another key initiative aimed at improving trade relations between Pakistan and Afghanistan is the expansion of the Gwadar Port in Pakistan. The expansion of this port is expected to provide a new outlet for Afghan trade, which will reduce the dependence on transit routes through Iran and Central Asia. This will not only improve the competitiveness of Afghan trade but also reduce the costs of trade for Afghan businesses and traders.

In conclusion, the trade relationship between Pakistan and Afghanistan is facing various challenges, including smuggling, corruption, and inadequate infrastructure. However, there are several initiatives underway to address these challenges and to improve trade relations between the two countries. The expansion of the Gwadar Port, the improvement of infrastructure at the Pak-Afghan borders, and the implementation of the Afghanistan-Pakistan Transit Trade Agreement are expected to provide a more stable and sustainable trade environment at the Pak-Afghan borders.

Afia Atiq Malik is an independent researcher and currently pursuing her PHD from the University of Wyoming, USA.

Leave a Reply

Your email address will not be published. Required fields are marked *